Marketing plan – Arimount Company Term Paper

Executive Summary

The communication objectives for this marketing plan are the creation of product awareness and positioning by efficiently and effectively offering information about the Amalast deodorant. The communication channels that will be used are electronic and print media. Electronic media will be the internet and television while print media will be the newspapers, magazines and bill boards.

An appropriate event sponsorship for the new product campaign would be road show in capital cities. The objectives of this event would be to create face to face contact and awareness with prospective customers.

Examples of two new product ideas resulting from Amalast are product durability and diversity. This is because it is expected that the deodorant will last for five days. Additionally, there is Amalast for men, and Amalast for women which creates a wide range of consumer choice.

Situational Analysis

Arimount Company is a beauty and grooming company aiming at changing the face of its deodorants. It will do this by introducing a new deodorant by the name Amalast. Letter ‘A’ stands for Arimount, ‘ama’ stand for amazing and ‘last’ stands for the long period the perfume’s scent will last. Amalast will contain a new chemical that will enable it to last for up to 5 days even after showering.

Additionally, the deodorant has a mild but attractive scent; hence the name ‘amazing’. This way it can be worn to the office and to a party. In order for Arimount to support its marketing strategy, it will use primary market research such as questionnaires. Some of the questions will be:

  1. How old are you?
  2. Which deodorant brand do you use?
  3. How long does it last?
  4. How much does it cost?
  5. For how long have you used it?
  6. Which features attract you to it?

Market Summary

The target market for Amalast deodorant is the hygiene market. This market has many players providing products such as deodorants, sprays among others. Arimount’s target group is the youth and the working class. This is because it will be affordable enough for them to acquire. Additionally, the youth tend to be more active than the old generation. Therefore, they expect a deodorant that lasts for long.

The working class is also a target because they need to appeal to the people and clients they interact with by maintaining freshness. In order for Arimount to examine customer satisfaction, it will have to conduct additional questionnaires every half annually after the introduction of the deodorant. Additionally, it will need to assess the performance of its sales revenues. This way it can monitor Amalast’s sales.

In order to create customer loyalty, Arimount has to ensure that Amalast deodorant is readily available in the right quantities. It can do this by use of an inventory management system. Additionally, it should maintain the quality of its new product by ensuring that its ingredients are accurate so that it continues to last for 5 days. Product packaging, positioning and pricing are also important in maintaining customer loyalty.

The packages should be attractive, and the deodorants should be placed in accessible places. Arimount should liaise with its retailers in order to ensure that Amalast deodorants are conveniently located.

Arimount should aim at ensuring regulated pricing of its new product so that it is consistent with its quality. Advertising is also necessary in creating customer loyalty. This is because advertising reminds customers about the product’s existence and its features.

Market Demographics

The geographic coverage of the target group will be approximately 1,200 km2. This can be area coverage of a nearby city such as New York City. The target group’s population will be approximately 10 million. This target population will include the young, and the middle aged men and women. Some behavior factors to consider are cultural, social, psychological and personal factors.

Cultural factors affect a consumer’s wants, spending patterns and social factors such as social status affect a consumer’s tastes. Psychological factors affecting consumer behavior are motivation, attitudes and perceptions. Personal factors are age and income (Bhasin, 2010, p. 1).

Market Needs

Arimount Company reacts to market needs by rebranding existing products or designing new ones. For example, the company identified that deodorant consumers have problems with longevity of the available products. Therefore, it designed a new product that would last for up to 5 days.

Additionally, in order to simplify customer’s decision making, it trains its retailers about its products. This way, customers obtain all the information they require easily leading to a quick decision making. Therefore, they do not need to buy other products that they have no information about.

Market Trends

Increased male deodorants: Over a long time, deodorant usage among men has been low. Men used women deodorants comfortably. However, of recent, men’s hygiene awareness has led to growth in deodorants designed exclusively for men.

Growth in teenager and young adults’ market: There has been growth in the number of young deodorant users.

New inventions: There have been improvements to the existing deodorants. For example, new deodorants are mild and non-irritating.

Improving efficiency and skin compatibility: This is a new trend that aims at ensuring that new deodorants have high quality and last longer.

The introduction of natural ingredients in to perfumes: This trend aims at reducing chemical components that can ruin a user’s skin and health (Kanga, 2008, p. 1).

Market Growth

Global deodorant market is expected to reach $13.8 billion by 2017. Technological advancements in deodorant manufacture will drive growth in U.S. and European markets. Asia-Pacific, African, Latin American and Middle Eastern markets will grow as a result of rise in income levels.

The other drivers will be the current deodorant market trends. Asian and African markets are small because of their cultural background. However improved hygiene, income and market size create a potential for future market growth (Global Deodorants Market, 2012).

Segments to market to, and segmentation variables

Arimount will use segmentation to identify potential customer groups in the deodorant market. The segments that the company will market to are the price, longevity and technology sensitive groups. Price sensitive group contains consumers that will buy the new deodorant because of its price. Longevity sensitive group will involve consumers that are interested in the period that the new deodorant will last.

Technology sensitive group will be interested in the new invention. Therefore, customers belonging to this group will buy the product despite its cost or longevity. The variables that should be used in these segments are segment sizing, market dimensionalization and communications profiling. Segment sizing helps Arimount to know how large the various segments are.

This is because it will be easier to market to large groupings rather than to extremely small groupings. Market dimensionalization is mapping of the main issues influencing consumer behavior, such as, cost and brand awareness.

This way it will be possible to identify the most crucial issues in the market. Communications profiling will enable the company to know the main messages to use in order to reach the target segment. The messages will relate to customers’ perceptions (Speedback, 2011).

SWOT Analysis

SWOT analysis is an examination of the internal and external environment of Arimount Company. The internal environmental factors are the strengths and weaknesses while the external factors are opportunities and threats. By use of the SWOT analysis, the company can match its resources against the competitors.


These are resources or capabilities that Arimount can use to gain a competitive advantage. For example, the company can use its strong brand name as well as the strong name of Amalast deodorant. The other strength that Arimount has is a good reputation. The company has been in the hygiene market for 20 years enabling it to gain consumer confidence and loyalty.

Cost advantage is also a strength that Arimount owns. The company employs cost effective manufacturing techniques in order reduce operating costs. This way its products are affordable. Additionally, the company can access to high quality natural resources. This is a strength that has enabled it to make a chemical that allows Amalast to last for 5 days.


These represent the absence of some strengths within the company. For example, Arimount has experienced poor reputation from some of its brands. The scent of its deodorants usually lasts for less than two days. Additionally, the company has had high cost structure.

Since it prides itself with quality, it has been pricing its products above the market price. This has posed a threat to its sales revenue. Previously, the company was facing problems from the use of chemicals in its deodorants. This posed health risks to its consumers.


Opportunities are external prospects that can enable Arimount to grow. For example, the unsatisfied consumer needs. Most of the deodorants in the market wear off quickly, and almost all of them do not last after shower. This is a market gap that Arimount can close through the introduction of Amalast deodorant. Additionally, the company can use technology in order to reduce costs and to improve the quality.

This way, product design and packaging, can be modified in order to appeal to customers. Fewer regulations and trade barriers can also be an opportunity for Arimount. Because of the growth in hygiene awareness in Asia-Pacific, Middle Eastern and African markets; removal of international trade barriers between these markets and the U.S can work in favor of Arimount Company.


These are external environmental changes that pose a threat to Arimount’s growth. For example, shifts in consumer tastes and preferences. If consumers prefer deodorants manufactured by Arimount’s competitors, then the company’s sales revenue and growth will reduce. Additionally, there are products that can act as deodorant substitutes.

For example, some people may opt for antiperspirants which reduce the body odor by reducing the level of sweating. This can pose a threat to Arimount because Amalast is a deodorant and some consumers may opt for antiperspirants. Many regulations and trade barriers can also threaten Arimount’s growth. For example, trade barriers between Asian and European or American markets can pose a threat to any company’s growth.

Product Offering

A product is anything offered to the market in order to satisfy consumer needs. Product offering can involve a good, service, an idea or even a person. Core benefit is the essential need or want that consumers satisfy by using a good or service. For example, by use of Amalast deodorant, consumers will be able to remain fresh for 5 days. A basic product is one which contains only the features that are necessary for its function.

For example, Amalast contains perfume ingredients, which enable it, to sweeten the sweaty smell. An expected product contains the features that the buyer expects when purchasing it. An augmented product involves adding features or benefits to a good or service in order to differentiate it from its competitors. For example, Amalast contains a chemical that enables it to last longer than the ordinary deodorants.

A potential product involves future additional features and transformations to a product. For example, it is expected that, in future, Arimount will improve the scent and longevity of Amalast to more than five days (Kotler, 1969, p. 1).

Keys to Success

Arimount aims at regulating the price of Amalast to a level that is at par or slightly higher than the price of competing deodorants. Additionally, the price cannot be less than the market price of the competing deodorants.

This is because of Amalast’s high quality. An implication of this pricing decision is that price sensitive market segment may reduce its consumption level. This is because this segment may opt for the most affordable deodorants.

Critical Issues

Arimount will need to use attractive packages for its Amalast deodorant. The containers should be smooth and durable. The decorations and colors should be appealing to both gender and target age group. The company’s name and logo, and the deodorant’s name should be imprinted on the package.

The deodorant should also be drawn on the container. Additional important features to consider are longevity, ingredients, usage, warnings, volume, expiry date and place of manufacture. These should be imprinted on the container.

Brand differentiation

Fragrance or scent creates differentiation. For example, Amalast has a sweet, mild and attractive scent that is different from all the other deodorants in the market.

Longevity: The period that a product can serve a consumer is vital. Amalast can last for five days even after showering. This makes the deodorant to be unique.

Company logo: This is one of the major things that consumers observe before buying a product. Therefore, Arimount’s logo will be imprinted on Amalast in order to increase identification to customers looking for a particular brand name.

Appropriate positioning

Amalast’s defining position in the hygiene market is the young generation and working class dwellings. This way the mild, attractive scent suits this target group and positions the deodorant comfortably in the market.

Positioning messages can also be used in positioning a product. For example, use of “High End Brand” can be a positioning strategy.

Strategic group determinants and competitive strategy

In order to determine Arimount’s strategic group, I would use demographic and geographic factors. This way I can be able to know the opportunities that lie within the population. The most competitive strategy would be product differentiation. By ensuring that Amalast smells unique and lasts for long, then Arimount will stay ahead of the competition.

Marketing Strategy


Arimount’s mission is to offer healthy, durable and high quality deodorants to the consumers.

Marketing Objectives

The company’s marketing objective is to create brand awareness and recognition among its consumers. Additionally, Arimount aims at positioning Amalast among the consumers by providing them with adequate information about the new deodorant.

Financial Objectives

Arimount’s financial objective is to increase its shareholder return and to increase its turnover from $30million to $32million. Additionally, it aims at increasing its operating profit from $2million to $2.5million.

Target Markets:

The target market is the hygiene products users. These will be the teenagers and young adults of both sexes.


There are two most appropriate channel levels. These are manufacturer to retailer level, and retailer to consumer level. Major towns and cities will be the retailers’ locations.


Since the channel levels are few, the channel numbers will be approximately 100 retailers across a given city. Therefore, the best distribution channel would be selective distribution. This will require Arimount to use a limited number of retailers in a given geographical area to sell its deodorants. This is the best channel because it enables the manufacturer to focus its energy on the best performing retailers.

Marketing Programs

For distribution purposes, Arimount will use store retailers that function on a fixed point of sale. Store retailers can be specialty stores, convenience stores, supermarkets among others.

Marketing Research

The advantage of using store retailers is that they create customer loyalty because they have fixed positioning. However, they may not reach a wider customer base because they do not conduct massive broadcasting like non-store retailers.


Break-even Analysis

Break even analysis is a calculation of sales volume that is just enough to cover costs. Fixed costs, variable costs and selling price, are used to obtain the breakeven point (the point of zero profits).

Break Even point= Fixed costs/ (selling price per unit-variable costs per unit)

Arimount’s breakeven point= $60m/ ($200- $100) = 600,000

Therefore, the company must sell 600,000 units of Amalast per year in order to cover all its expenses.

Sales Forecast

Sales driven model can forecast both sales and expenses. For example, if 2012 sales revenues are $100million, and the percentage of sales is 10%, then projected (forecasted) sales for 2013 are $100m * (1+ 0.10)= $110million.

Expense Forecast

Assumption: Expenses for 2012 are $80million, sales revenues are $100million and projected sales revenues for 2013 are $110million. Projected (forecasted) expenses for 2013= $110m * (80m/100m) = $88million.


The purpose of marketing plan is to analyze the market environment in order to obtain useful information necessary in achieving an organization’s mission.


In order to monitor success, Arimount will conduct market research in order to obtain customer response. Additionally, Arimount will work closely with quality assurance team in order to maintain the quality of its new product. The company will acquire cost effective production measures that can regulate product pricing.

Marketing Organization

The introduction of Amalast is a key mile stone for Arimount. Additionally, the unique features that the deodorant contains are significant achievements in the hygiene market. Marketing organization enables product promotion to the consumers.

Contingency Planning

In order to prepare for unexpected market reaction to the new product, Arimount will start by producing few Amalast deodorants in order to caution against unexpected losses.


Bhasin, H. (2010). Factors Affecting Consumer Buying Behavior. Web.

Global Deodorants Market: To Reach US$13.8 Billion by 2017, According to a New Report by Global Industry Analysts, Inc. (2012). Web.

Kanga, V. (2008). Antiperspirant Deodorant Trends and Innovation. Web.

Kotler, P. (1969). Five product level. Web.

Speedback: Marketing Research and Consulting. (2011). Web.

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